India is quite a booming economy, but that does not always make it the safest to invest in. Often, the most active markets also see the most volatility and are subject to large changes. But, that does not mean that you do not invest in anything and wait for the market to stabilize, because no stability can last for too long. So, here are the top three investment vehicles you should hitch your wagon to in the year of 2018:
Blue-chip companies are the ones that have been around for a long time and have consistently weathered the highs and lows of the economy. In India, Reliance, Tata, Infosys, Birla, etc. are some of the best examples. The stocks of these companies are often found to be stable, regardless of the flux in the stock market.
This also makes them harder to get in bulk as their price is usually high. But, if you have the funds and are looking to make a safe bet rather than taking risks, they are your best option! These companies have large-cap stocks that are the most stable of the lot and if you can get your hands on some, it is sure to be a good investment. All you need is a Demat account, for which you can figure out the best financial institution through research.
Mutual funds are a staple on any list of great investments. The reason for this is that they even out the changing variables of the market through a scattered investment module. A mutual fund is usually comprised of small and medium-cap shares. Although they are more susceptible to change, they are also a high-return investment. When it comes to mutual funds, patience is the key.
Investing safely in a mutual fund takes a lot of research and the understanding that you will not see any large returns immediately. A minimum period of three years is advisable to maximize the profit, at which point you can either reinvest or sell.
Looking at the FY18-19 budget launched by the government of India, fixed deposits make it onto the list of safe investments in the coming year. The sole reason being that companies like Bajaj Finance are providing lucrative returns on fixed deposit investments with high interest rates. Usually, fixed deposits do not have a very high return rate and so are not attractive investments except to senior citizens. But, with higher FD interest rates and helpful tools such as the FD calculator, one can plan for a profitable investment using fixed deposits.
The tenor for FDs range between a few months to several years for the lock-down period, making them ideal for all types of investors. Moreover, the fact that your money is guaranteed a return with regulatory bodies preventing financial institutions from defaulting, fixed deposits are your safest investment bet for 2018.
Equipped with this knowledge, one must realize that 2018 is going to be a significant year for investors in the Indian market. The economy is booming and with all sectors of the market seeing growth, it is the right time to sharpen your investment portfolio. Be it blue-chip stocks, mutual funds, or fixed deposits, it is important to keep in mind the safety of your investment.
Making rash decisions or not doing enough research before investing is not the right way to go. Remember, do not invest in any “hot” tips this year with scams such as the cryptocurrency bubble gripping the world. Play it safe and invest in proven methods of growing your investment!